You receive two job offers in the same big city. The first job is close to your parents' house, and they have offered to let you live at home for a year so you won't have to incur expenses for housing, food, or cable and Internet. This job pays $45,000 per year. The second job is far from your parents' house, so you'll have to rent an apartment with parking ($10,500 per year), buy your own food ($2,750 per year), and pay for your own cable and Internet ($750 per year). This job pays $50,000 per year. You still plan to do laundry at your parents' house once a week if you live in the city, and you plan to go into the city once a week to visit with friends if you live at home. Thus, the cost of operating your car will be about the same either way. In addition, your parents refuse to pay for your cell phone service ($700 per year).

Requirement 1. Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)? Begin by computing the net salary for each alternative. (Complete all input fields. Enter a "0" for any zero balances.) Job # 1 Job #2 Salary Less: Relevant expenses Salary, net The net difference between the two jobs is I would save this much money if I chose to live at home and take Job #1. to live at home and take Job #2. to rent an apartment and take Job #1. to rent an apartment and take Job #2. Requirement 2. What information is irrelevant? Why? costs of doing laundry, operating the car, and paying for cell phone service are costs of food, rent, and cable TV are The irrelevant because they salaries earned are differ between the two alternatives do not differ between the two alternatives | will be increasing over time Requirement 3. What qualitative information is relevant to your decision? I might consider whether I would like to live with my parents again the cost of doing laundry at my parents will be too much the cost of operating my car will be too much . I would benefit if I lived at home I may decide it isn't worth it rented an apartment I might end up paying my parents rent I might have to pay more taxes Requirement 4. Assume you really want to take Job #2, but you also want to live at home to cut costs. What new quantitative and qualitative information will you need to incorporate in your decision? lower salary and the higher living expenses If I want Job #2 and I want to live at home, I will benefit by the However, I will need to factor in higher salary and the lower living expenses the chance that my parents would want me to pay some rent the chance my car breaks down V. Qualitatively, I will want to the higher costs of commuting to work by car (gas, tolls, service) or train (fare) consider whether the risk of my car breaking down is too high time spent commuting is better than hanging around the apartment time spent commuting is worth the extra money I will be netting from living at home